Responding to a WSJ report from Tuesday evening which suggest Apple (NASDAQ: AAPL) could be working o n a cheaper-priced iPhone model, Piper Jaffray's Gene Munster said Wednesday morning the range would likely be between $149 and $199 without a contract.

Munster predicts the lower-priced model could carry around 30 percent gross margin. The analyst is modeling for a cheaper iPhone to add about $6.5 billion in sales over the course of 2013. Munster sees 30 basis points of gross margin dilution related to such a device.

Piper Jaffray currently has an Overweight rating and $900 price target on shares of Apple.